When the company set out to replace its legacy ERP systems with SAP it recognised it was maintaining detail of over 50,000 suppliers, many of whom were rarely used.
If the procurement team were to improve the management of the relationships they had with their suppliers, then better visibility of accurate and up-to-date data was necessary.
The main challenge was that they had disparate views of supplier information across 21 legal entities. This resulted in data inconsistencies and errors.
They also needed to ensure that supplier information was not only accurate and up to date, but valid.
The requirement was to establish a comprehensive supplier qualification and accreditation process to ensure that auditing of high risk elements was carried out correctly, thoroughly and on a regular basis.
Exposure to risks such as health & safety processes or liability insurance being neglected could have serious consequences in the event of an accident.
They chose PROACTIS Supplier Relationship Management (SRM) software to help manage the supplier recruiting, qualification, adoption and performance appraisal process in a systematic way. This included:
- Supplier Portal to enable highly effective engagement between buyers and suppliers
- Central directory of all supplier information for increased visibility and transparency
- All the necessary electronic workflows and business rules to support procurement processes.
The purpose was to:
- Make supplier information readily available by consolidating it in a central directory
- Reduce supplier risk and improve supplier relationships while removing administration effort
- Reduce procurement workload by providing suppliers with controlled access to maintain their own company information without the need to call.
- 6,300 suppliers accredited and supplier records rationalised
- 100% visibility of accredited suppliers, based on factors including; financial qualification, liability insurance, quality metrics, environmental health & safety standards, and reportable incidents
- The online Supplier Directory enabled strategic sourcing to identify approved suppliers for new sourcing opportunities and reduce the need to allocate resources to qualify additional suppliers.